Sunteți pe pagina 1din 13

"If A equal success, then the formula is

A equals X plus Y and Z, with X being


work, Y play, and Z keeping your
mouth shut."
--Albert Einstein

"The road to success is filled with


women pushing their husbands along."
--Thomas R. Dewar

Entrepreneurship
Beyond Startup
Business Problems

Growth Stage
Growth
Death
Creation
of
Myths

Teach
and
Share

Successor
s
Hard Work

or Destroy!
Hard
Work!
Liquidation

1
Wonder

2
Blunder

3
Thunder

4
Plunder

Asunder
or
Renaissance
of Wonder

Time

The Problem in Rate of Growth

Pre-Startup (Years -3 to -1)


Startup and Survival (Years 0 to 3)
Early Growth (Years 4 to 10)
Maturity (Years 10 to 15 plus)
Harvest/Stability (Years 15 to 20 plus)

Strategic Issues for Getting in


Trouble
Misunderstood market niche
Mismanaged relationship with
suppliers and customers
Diversification into an unrelated
business area
Mousetrap myopia
The big project
Lack of contingency planning

Management Issues for Getting in


Trouble
Lack of management skills,
experience, and know-how
Weak finance function
Turnover in key management
personnel
Big-company influence in accounting

Predicting Trouble Quantitative


Signal
Net Liquid Balance to Total Assets Ratio

NLB
NLBTAR
TA
NLB = (Cash + Marketable Securities)
(Notes Payable + Contractual
Obligations)

Predicting Trouble NonQuantitative


Signal
Inability to produce financial statement
on time
Changes in behavior of the lead
entrepreneur
Change in management or advisors
Accountants opinion
Lower research and development
expenditures

Preventing Actions
Clarity
The degree of organizational clarity in terms of being
well organized, concise, and efficient in the way that
tasks, procedures, and assignments are made and
accomplished
Standards
The degree to which management expects and puts
pressure on employees for high standards and
excellent performance
Commitment
The extent to which employees feel committed to the
goals and objectives of the organization

Preventing Actions
Responsibility
The extent to which members of the organization feel
responsibility for accomplishing their goals without
being constantly monitored and second-guessed
Recognition
The extent to which employees feel they are
recognized and rewarded (non-monetarily) for a job
well done, instead of only being punished for mistakes
and errors
Esprit de corps
The extent to which employees feel a sense of
cohesion and team spirit, of working together

Intervention Action

Diagnosis
Strategic Analysis
Analysis of Management
Quick Cash
Dealing with Lenders/Suppliers
Workforce Reductions

Long-Term Remedial Actions


Systems and procedures
Assets plays
Creative solutions